REFERENCE Archive
Marginal Standing Facility (MSF)
Marginal Standing Facility or MSF is a window that permits overnight borrowing by banks from RBI, at their discretion. MSF scheme is introduced to minimise volatility in the overnight lending rates in the inter-bank market (call market).
Liquidity Adjustment Facility (LAF) & Repo Transactions
Liquidity Adjustment Facility or LAF is a facility extended by the Reserve Bank of India to the scheduled commercial banks (excluding RRBs) and Primary Dealers (PDs) to meet their mismatches in daily liquidity. Under LAF, SCBs and
Open Market Operation (OMO) by Regulator
Open Market Operation (OMO) means the purchase or sale of government securities by the central bank of a country from / to the banks on its own account. The purpose of open market operation is ensuring sufficient
e-KYC – Electronic Know Your Customer process
e-KYC is an electronic way of carrying out the Know Your Customer (KYC) process. The e-KYC process is completed through an authentic real time method using Aadhaar Authentication by the customer. It is a simple paperless way
Cheque Truncation Systems (CTS)
Cheque Truncation System (CTS) is the process whereby the image of cheque or instrument is used for clearing the fund instead of handing over the physical instrument. Clearing system in India had been functioning based on the
National Financial Switch (NFS)
National Financial Switch (NFS) is the largest network of shared automated teller machines (ATMs) in India. Thus, NFS functions as the backbone of Indian ATM network. NFS was designed and implemented by the Institute for Development and
30 Apr 20
CategoryBanking Awareness, Digital Banking Products, Everything About
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APBS & AEPS (Aadhaar Payment Bridge System & Aadhaar Enabled Payment System)
Aadhaar Payment Bridge System (APBS) and Aadhaar Enabled Payment System (AEPS), leverage the power of the unique Aadhaar number issued by UIDAI (Unique Identification Authority of India). AEPS and ABPS were introduced by NPCI for payment services.
29 Apr 20
CategoryBanking Awareness, Digital Banking Products, Everything About
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National Automated Clearing House (NACH) & Electronic Clearance Service (ECS)
National Automated Clearing House (NACH) is a web based solution implemented by National Payments Corporation of India (NPCI) for addressing recurring, interbank, high volume electronic transactions. It is an improved and much efficient version of Electronic Clearance
28 Apr 20
CategoryBanking Awareness, Digital Banking Products, Everything About
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Indian Payment Systems – An overview
Indian payment systems and settlements have traditionally been revolving around physical cash. Subsequent to nationalisation of banks, paper based instruments like cheque, draft and other negotiable instruments started receiving acceptance among public. There has been a rapid
Payment Systems and Classifications
Payment system is a system or method adopted to settle financial transactions through the transfer of monetary value. The system enables cash equivalents to be used for settlements in domestic and international transactions in lieu of physical